Refer to the information provided in Figure 9.3 below to answer the question(s) that follow. Figure 9.3
-Refer to Figure 9.3. This firm's shutdown point corresponds to Point
A) A.
B) B.
C) C.
D) D.

Question

Refer to the information provided in Figure 9.3 below to answer the question(s) that follow.  Figure 9.3
-Refer to Figure 9.3. This firm's shutdown point corresponds to Point
A) A. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

The shutdown point for a firm is where the price it receives for its product is equal to its average variable cost (AVC). At this point, the firm covers its variable costs but not its fixed costs. Point B represents the price level where it intersects the AVC curve, indicating the shutdown point.

Refer to the Information Provided in Figure 9